Cato Corporation reports narrowed Q3 loss and 6 percent sales increase

The Cato Corporation reported improved third-quarter results, narrowing its loss to 5.2 million dollars, or loss of 28 cents per diluted share, for the period ended November 1, 2025. This compares to a net loss of 15.1 million dollars, or loss of 79 cents per diluted share, a year earlier. Third-quarter sales rose 6 percent to 153.7 million dollars, supported by a 10 percent increase in same-store sales.

For the first nine months of fiscal 2025, Cato posted net income of 5 million dollars, or 25 cents per diluted share, reversing a loss of 4 million dollars in the prior-year period. Year-to-date sales increased 2 percent to 496.8 million dollars, while same-store sales rose 6 percent.

Chairman, president, and CEO John Cato said improved trends from the second quarter continued into the third, aided by easier comparisons as last year’s results were disrupted by three major hurricanes and supply chain delays.

However, he cautioned that the fourth quarter may be challenging due to slowing employment growth and softer economic conditions, noting the company will maintain tight control over expenses and inventory while working to drive sales.

Cato continued to rationalize its store fleet, closing 16 locations year-to-date. As of November 1, 2025, the company operated 1,101 stores across 31 states, down from 1,167 locations a year earlier.